MCA consolidation replaces several merchant cash advances with one. New funding pays off the balances you already owe, so instead of two, three or four daily debits leaving your account, there is a single payment, usually spread over a longer term. It is sometimes called an MCA consolidation loan or an MCA refinance, and it is one of the most common reasons owners call us.
When consolidating makes sense
The case for it is almost always cash flow. Each advance was sized against your deposits on the day it was taken, but together they can take more out of the account every morning than the business can comfortably carry. Consolidation is worth a serious look when:
- The combined daily or weekly payments are squeezing payroll, rent or inventory.
- You are juggling several payment dates, amounts and contacts and want one.
- Revenue is steady or growing, so a single, longer schedule is genuinely affordable.
- You would otherwise take another advance on top of the existing ones just to keep up.
When it does not
Consolidation lowers the payment; it does not erase the cost. A longer term at a new factor rate can mean a higher total payback than letting the existing advances run off, especially if one of them is nearly finished. If your balances are small or close to paid, or the pressure is a one-off slow month rather than the structure itself, waiting can be cheaper. We will tell you if that is the case.
How it works
1. Statements and balances. Four months of business bank statements and the current balance on each advance. The payments are visible in the statements anyway; the balances tell us what has to be cleared.
2. Payoff figures. Each existing funder provides a payoff amount. Those figures, not the original advance amounts, decide what the new funding has to cover.
3. One offer. The offer is sized to clear the payoffs, sometimes with additional working capital on top when the deposits support it, and priced on the business as it stands today.
4. Payoffs, then one payment. Balances are paid off at funding, and from then on there is one payment on one schedule.
A worked example
A business with $60,000 a month in deposits is repaying three advances: $310, $260 and $190 a day, or $760 every business day. That is roughly $16,000 a month, more than a quarter of everything coming in. Consolidated into one schedule over a longer term, the daily payment might fall to around $450. The monthly breathing room is real. So is the trade-off: the payments run for longer, and the total repaid has to be compared with what the three advances would have cost on their own. Run both through the MCA calculator before deciding.
What we look at
Average monthly deposits, the number of advances and their combined payment, the payoff balances, how long the business has traded, and how the existing advances have been repaid. A clean repayment history on the current positions matters more than a credit score here. Holding several advances is not, on its own, a reason for a no.
Consolidation is not debt settlement
Consolidation pays your existing balances in full and replaces them with new funding. Debt settlement is different: a third party negotiates with funders to accept less than is owed, usually after payments have stopped. We do not negotiate settlements, and nothing on this page is legal advice. If you are already in default or facing collection, speak to an attorney about your options before taking on anything new.
Read next: Funding with an existing advance · MCA calculator · Merchant cash advance
Checking whether consolidation would work for your business takes about 60 seconds, uses a soft credit pull only, and costs nothing. Start an application or request a callback to talk through your current balances.
Common questions
Will consolidating lower the total cost of my advances?
Not necessarily. It almost always lowers the daily or weekly payment, because the balance is spread over a longer term, but the total repaid can be higher than letting the existing advances run their course. Compare both totals before you decide.
Can I consolidate if I am behind on payments?
Sometimes. Missed or bounced payments make consolidation harder and can limit the options, because they show up in the bank statements every offer is built on. Applying before the account falls behind gives you the most choice.
Does applying for consolidation affect my credit score?
Checking your options uses a soft credit pull only, which does not affect your score. There is no cost to apply and no broker fee.